Scotch bottled in India on a new high

Raja Awasthi, TNNMay 13, 2007, 01.08am IST

NEW DELHI: Talk about high spirits, and there's no way you can scotch it. After the Indian Made Foreign Liquor (IMFL) market, it's the sales of scotch bottled in India (BII) brands that's on a new high, growing at 40% p.a. for the last two years. In the case of bottled-in-origin (BIO) or imported liquor, a growth of 10-15% is being seen in the duty paid and duty free markets in last couple of years.

Sales of the top seven BII scotch brands increased from 2,49,000 cases in 2005 to 3,23,500 cases in 2006 and is expected to touch 5 lakh cases this year. According to the International Spirits & Wines Association of India (ISWAI), Teachers (all variants) sold 95,000 cases in 2005, 135,000 cases in 2006 and is expected to cross 180,000 cases this year, while 100 Pipers sold 80,000 cases in 2005 and 85,000 cases in 2006.

It is expected to touch 95,000 cases this year. Black Dog on the other hand, sold just 14,000 cases in 2005 and 25,000 cases in 2006. This year is expected to be relatively much better at 60,000 cases. Other brands such as Passport, Vat 69, Black & White and Haig have also shown better growth numbers.

Says Sunil Mehdiratta, secretary general, ISWAI: "Growth in the consumption of scotch brands in India has been mainly driven by increased sale of BII brands, growing at 40%. Bottled-in-origin sales are picking up in duty paid and duty free market, but it's small since taxes on them are high."

Higher disposable incomes is what's seen as a reason for the growth being this high. Also, scotch is what people aspire to be seen drinking — and so that's what's being brought out in the case of a celebration. Agrees Harish Moolchandani, MD, Beam Global Spirits and Wine (India): "With Teachers we see 45% growth in India — the company is now expanding into the neighbouring countries in the sub-continent such as Sri Lanka, Nepal, Bangladesh and Maldives taking the duty-free route initially."

With the European commission having filed a case with the WTO against the levy of additional duty by India, BIO growth may get a huge boost. Also since the current taxation structure does not make large imports of BII brands viable, the industry is expected to import bulk spirits for blending with local whisky to make superior products for the consumer. International brands will then have perhaps three per cent of the Indian market of 130 million case.